Outsourcing

Why is outsourcing becoming a big issue in United States? Reason why is because more and more companies are contracting out of the U.S and into foreign countries. India and China are the countries that are leading the way for these contracting companies to come into there countries. With more companies outsourcing to other countries it is leaving U.S with higher unemployment rates and less jobs for the middle class people.

Reason why companies are outsourcing to other companies is because of cheap labor. It is cheaper to have a company in India then here because the dollar valued is worth more in India. People almost have same education or not more and pay less in wages to do the same jobs. Study showed that jobs that left the United States for other countries in January through March 2004, 23,396 went to Mexico, 8,283 to China, 3,895 to India, 5,511 to Latin American countries other than Mexico, 4,419 to Asian countries other than China and 2,933 to other countries (www.news.cornell.edu/choronicle/04/10.21.04/outsourcing_jobs.html). What kind of business are begin outsource Information Technology/IT solutions, Call Centers, Finance & Accounting Outsourcing, Textiles, Manufacturing, and Human resource Management. Textiles India may soon emerge as the preferred textile and readymade garment-outsourcing destination after neighboring China, the world's largest garment exporter, in the next few years. Global retail chain majors like Wal-Mart and JC Penny are already showing their intention. Human resources outsourcing (HRO) was one of the most rapidly evolving outsourcing markets in 2003. Eighty-five percent of American enterprises will outsource at least one component of their human resources functions by 2005, according to Gartner Dataquest, a Stamford, Connecticut research firm. One of the biggest developments in this field last year was the growth of full-service HRO that encompasses a complete solution across the breadth of the employee lifecycle,...